Why Auto Manufacturing Is Expanding Into New Industrial Clusters
India’s automotive sector is entering a capacity expansion phase driven by rising domestic demand, export ambitions, and the transition toward advanced mobility technologies. States are competing to attract large-scale manufacturing investments to strengthen supply chains, generate employment, and build regional industrial hubs.
What Mahindra Has Announced
Mahindra Group will invest ₹15,000 crore in Maharashtra over the next decade, including setting up a new integrated automobile and tractor manufacturing facility in Nagpur. The announcement was made during Advantage Vidarbha, a flagship event aimed at positioning the Vidarbha region as an emerging industrial growth hub.
Details of the Manufacturing Expansion
The Nagpur facility will become Mahindra’s largest integrated manufacturing site for automobiles and tractors in India. Production at the plant is scheduled to begin in 2028. Once fully operational, the facility will have an annual capacity of more than 5 lakh vehicles and 1 lakh tractors.
In addition to the Nagpur project, Mahindra plans to acquire land in the Igatpuri-Nashik region to expand engine manufacturing and product development capabilities, while also supporting growth in its Advanced Technology business.
Land Acquisition and Infrastructure Scale
The company plans to acquire over 2,000 acres across three locations in Maharashtra as part of this expansion, reinforcing its long-term manufacturing footprint in the state.
Market Impact
The investment strengthens Maharashtra’s position as a major automotive manufacturing hub and is expected to generate employment, strengthen vendor ecosystems, and improve logistics integration across central and western India.
Evergreen Insight
As mobility companies prepare for electric, hybrid, and advanced vehicle platforms, large integrated manufacturing campuses are becoming critical to scaling production and technology deployment simultaneously.
Operator Takeaway
Mahindra’s long-term manufacturing bet signals how legacy automotive players are balancing capacity expansion with technology readiness to stay competitive in India’s evolving mobility ecosystem.
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